A Connecticut man has been sentenced to more than five years in federal prison and ordered to pay more than $38 million in restitution and back taxes for defrauding a candy manufacturer where he worked out of millions of dollars.
Paul R. Steed, 59, of Stamford appeared Thursday in federal court in Bridgeport where U.S. District Judge Kari A. Dooley sentenced him to 63 months in prison and three years of supervised release, according to the U.S. Attorney’s Office for the District of Connecticut.
Dooley ordered Steed to pay $28,410,489 in restitution to Mars, Inc., and $10,310,680 in back taxes to the IRS.
Steed, who is free on $5 million bond, is required to report to prison on March 5. In September, he pleaded guilty to two counts of wire fraud.
“Justice is served by the imposition of this sentence,” U.S. Attorney for the Connecticut District David X. Sullivan said in a statement. “Thanks to the thorough investigative efforts by FBI, IRS-CI, and USDA-OIG special agents, Mr. Steed’s criminal conduct was quickly exposed. These agents not only identified the money that he stole, they successfully seized millions of dollars that will be returned to the victim company.”
FBI New Haven Special Agent in Charge P.J. O’Brien described the fraud as a “complex, multi-faceted” scheme involving tens of millions of dollars.
“Utilizing forfeiture statutes, expert forensic accounting techniques and court authorized search warrants, investigators recovered millions in embezzled funds and ensured that over nine years of back taxes, totaling millions of dollars, would be paid,” O’Brien said in a statement. “The FBI remains committed to working closely with our private sector and government partners to prevent and address waste, fraud, and abuse.”
Between 2011 and 2023, federal officials said Steed was employed at Mars Wrigley, a subsidiary of Mars. Inc., a Virginia-based company that manufactures candy, pet food and other food products. He worked remotely from his home and served in several positions, the last of which was as the Global Price Risk Manager for Mars Wrigley’s Global Cocoa Enterprise, officials said.
Part of Steed’s responsibilities included managing Mars Wrigley’s participation in the U.S. Department of Agriculture Sugar-Containing Products Re-Export Program. Around 2016, authorities said, Steed created a company called MCNA LLC, which was made to mimic an actual Mars entity, Mars Chocolate North America. Federal officials allege he then diverted more than $15 million in Mars assets to a bank account he set up in MCNA’s name by “directing sugar refineries purchasing Mars’s re-export credits, obtained through the USDA program, to pay MCNA LLC as if it were a legitimate Mars entity.”
According to federal officials, Mars had an ownership interest in Intercontinental Exchange, Inc. (“ICE”), a financial services company that operated financial exchanges and clearing houses, and received quarterly dividends in connection with that ownership. In 2017, Steed allegedly directed Computershare Limited, a company that ICE utilized for stock-related services, to pay MCNA LLC for Mars’s dividends from its ownership shares in ICE.
“As a result, more than $700,000 in dividend payments were diverted to the MCNA LLC account,” the U.S. Attorney’s Office said in a statement.
In 2023, after Steed had allegedly used a fraudulent letter purportedly from the Mars Treasurer authorizing him to trade ICE shares, Steed directed Computershare to sell Mars’s ICE shares entirely, authorities said. Computershare issued a check for more than $11.3 million, which Steed allegedly deposited into the MCNA LLC account, according to officials.
Authorities allege Steed also used a company he owned called Ibera LLC to invoice Mars for services Mars did not receive between 2013 and 2020, according to officials. Mars paid Ibera LLC more than $700,000 through this scheme.
Federal officials said Steed did not pay any taxes on the income he stole.
The government has seized more than $18 million from bank accounts controlled by Steed, which authorities said he has agreed to forfeit. Officials said they are also looking to forfeit, or alternatively liquidate for restitution, a Greenwich home that Steed is alleged to have purchased with nearly $2.3 million in stolen funds.
Federal officials believe he also sent another $2 million to Argentina where he is a dual citizen, has family ties and owns a ranch.
“Today’s sentencing sends a strong message to all those who think that corporate embezzlement is a victimless crime: We will find you and we will prosecute you to the fullest extent of the law,” said IRS Criminal Investigation Special Agent in Charge Thomas Demeo. “Steed utilized his position of trust and authority within the Mars corporation to siphon off millions of dollars for his own personal gain and self-enrichment. Not only did he steal from the Mars Corporation, but he also stole from every American family when he chose to conceal his ill-gotten gains from the IRS resulting in less tax revenue that could be used to enhance public welfare.”
“Mr. Steed exploited an important USDA program intended to support American exporters to market U.S. agricultural products in international commerce for personal fraudulent gain,” said USDA Inspector General John Walk. “The USDA Office of Inspector General is pleased to support the work of our law enforcement partners including the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations Division, U.S. Marshals Service, and the U.S. Attorney’s Office to help deliver justice and protect taxpayer dollars. I commend USDA OIG Special Agent-in-Charge Charmeka Parker and all our special agents and employees who supported the investigative effort.”